Independent Contractors Have No Workers Comp Benefits in the Sharing Economy
In recent months, numerous independent contractors working for all kinds of businesses – from Google coders to exotic dancers to sharing economy employees – have filed lawsuits claiming that their employers are in violation of the Fair Labor Standards Act. Many companies have been accused of violating fair wage laws by hiring employees as independent contractors so that the companies pay less for employment taxes and health benefits. But independent contractors also … [Read more...]

Handy App Faces Labor Violations Lawsuit from Two Former Independent Contractors
Self-employment through mobile apps and websites is booming – businesses like Uber and Lyft hire drivers under 1099 tax forms so the employees use their own vehicles; AirBNB allows individuals to rent out rooms in their homes for various amounts of time so travelers have a nice place to stay; and apps like TaskRabbit and Handy allow people with extra time to run errands and perform cleaning services at various rates for individuals who hire them. However, all of … [Read more...]

Class Action Filed Against Google for Mislabeling Workers as Independent Contractors
On Wednesday, November 12th, a former Google employee filed a class action lawsuit against the tech company for misclassifying him as an independent contractor, which allowed the company to avoid paying federal taxes, give him overtime, or pay his workers comp. The lawsuit was filed in a New York federal court, and although there is only one plaintiff so far, the lawsuit seeks to consolidate as a class action to fight for other current and former Google … [Read more...]

Las Vegas Exotic Dancers are Due Workers Comp for Injuries After Being Ruled Employees of Club
The Sapphire Gentlemen’s Club in Las Vegas, Nevada, erroneously classified their exotic dancers for years as independent contractors, rather than employees, in order to avoid taxes and workers comp payments. Now, the Nevada Supreme Court has overturned a previous ruling that the dancers are not due workers comp coverage, finding that the dancers are full employees of the club, and are therefore due workers comp for injuries sustained on the job, … [Read more...]

Employers Criticized for Misclassifying Independent Contractors to Avoid Workers Comp Premiums, Taxes
Under traditional employment terms, employers pay for workers comp insurance coverage for their employees. However, with independent contractor status, the employee is not a direct employee of the company they receive paychecks from, which means the employer does not have to cover federally-regulated employee benefits like workers comp. Recently, numerous businesses, from construction companies to hospitals to strip clubs, have faced heavy … [Read more...]

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